By Jhoo Dong-chanA cutthroat race to acquire two Lotte Group financial units has begun in earnest as the final bidding for the two firms is about two weeks away.Hana Financial Group, Hanwha Group, MBK Partners, Hahn & Company and IMM Private Equity are finalists in the Lotte Card bid. For the Lotte Insurance bid, MBK Partners, Hahn & Company, JKL Partners and the Taiwanese Fubon Group are on the shortlist. Citigroup Global Markets Korea Securities is managing the sales of the units, and recently sent a letter to the firms regarding the timetable for the bid which will take place April 19.Lotte Group is said to want at least 1.5 trillion won ($1.31 billion) for Lotte Card and 500 billion won for Lotte Insurance."Lotte Card has enjoyed a synergy effect with the group's other retailer units through various promotional events," Lotte Group said.

Lotte Group's headquarters in Seoul. / Yonhap

Lotte Insurance is also the nation's second-largest retirement pension insurer with a 25.5 percent market share, following Samsung Fire & Marine Insurance's 33.5 percent.MBK Partners has reportedly demonstrated a strong interest in acquiring the two Lotte Group units as a package deal, an attractive option to the group.Hanwha is also one of the strongest finalists for Lotte Card."Hanwha has demonstrated its interest in Lotte Card for quite a while," a Hanwha Group official said, refusing to elaborate since bidding is still under way, but expressing hope for synergy with Hanwha Group subsidiaries if the acquisition is made.Observers say Hanwha could expect synergy with its retailer subsidiary Hanwha Galleria if it acquires Lotte Card. Utilizing the card firm's database, Hanwha Galleria is expected to secure access to a wider range of customers.Hana Financial Group's possible acquisition of Lotte Card could be a great asset to strengthen its non-banking sectors. If the group manages to merge its card subsidiary Hana Card with Lotte Card, it will create Korea's third-largest card firm with assets worth 20 trillion won.Last year, Lotte Group placed its three financial subsidiaries ― Lotte Card, Capital and Insurance ― up for sale in a bid to restructure itself into a holding company. Under related laws, a holding company is not allowed to possess a financial subsidiary.Lotte Group, which established Lotte Holdings in October 2017, had two years to sell its three financial subsidiaries. But last month Lotte Group decided to withdraw its sale of Lotte Capital.